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The central bank’s new development concept permits tightly controlled crypto investment and foreign trade use while preserving a domestic payments ban, reshaping compliance exposure for payments firms with Russian-linked activity.
Under the proposal, announced by the Bank of Russia in December 2025, digital currencies would be legal for investment and cross-border transactions, while remaining strictly banned from domestic payments.
For the Bank of Russia, this represents an attempt to reconcile the realities of foreign trade under sanctions with its insistence on preserving monetary sovereignty.
Non-qualified investors will be allowed to buy the most liquid cryptocurrencies, subject to criteria stipulated by law. Access will be conditional on passing a mandatory test and capped at RUB300,000 ($3,960) per year via a single intermediary.
Cryptocurrency transactions may be conducted through existing market infrastructure, and exchanges, brokers and trustees will be allowed to operate under their respective licences.
The central bank stated that the related legal framework is to be drafted before July 1, 2026. In parallel, it plans to introduce liability for intermediaries’ illicit operations in the cryptocurrency market, similar to that for illegal banking, including substantial fines and imprisonment.
A hard ban at home
The strategy marks a significant liberalisation of the Russian cryptocurrency market, at a level exceeding many prior expectations.
Even so, the Bank of Russia is yet to grant cryptocurrency the status of a means of payment within the country.
Dmitry Solomnikov, director of 1Capital, a Moscow-based financial market consultancy, stated, “This fits in with the current sovereignty model: the ruble, and potentially, a digital ruble, is the only legal tender in the country”.
Allowing cryptocurrency into internal settlements could fuel inflation and undermine monetary control, triggering an increase in grey market transactions, Solomnikov added.
Observers suggest that sanctions pressure has been a key factor in the Bank of Russia’s decision to liberalise crypto assets. The central bank's proposal is a compromise to facilitate foreign trade without affecting the national financial system’s stability, given that it continues to consider cryptocurrencies a high-risk instrument.
According to Kirill Pistsov, head of product development at Moscow-based financial advisory firm Finam, if domestic settlements are allowed, the central bank in effect loses control over part of the money supply, and with it, inflation and price stability.
“This is a red line for the regulator, and under the current circumstances, it's certainly not one it will cross,” Pistsov said.
An admission of failure
The new proposal signals that the Bank of Russia recognises the failure of its policy of harsh restrictions in the cryptocurrency field.
“Over time, it became clear that the lack of legal regulation, as well as attempts to completely ban cryptocurrencies from circulation, did not lead to a decline in interest, but rather shifted their use into grey areas,” said Alexandra Sokolnikova, a lawyer at Digital & Analogue Partners.
The new proposal is the culmination of a trend that became evident during 2025, when an experimental regime permitted the use of cryptocurrency for settlements under foreign trade agreements and granted permission to mine cryptocurrencies.
“Legalising crypto asset trading through licensed intermediaries is, in essence, an acknowledgement of reality: crypto already exists, people are using it, and it makes more sense to bring this market within the legal framework than to continue pretending it doesn't exist,” Pistsov said.
Sanctions as the real catalyst
The current geopolitical context offers a clear explanation for the partial liberalisation of crypto-assets in Russia, given that the conditions of international settlements for Russian firms are consistently tightening.
Most recently, the EU’s January 2026 designation of Russia as a “high-risk third country” due to strategic deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks created a new layer of challenge for Russian businesses and their international partners.
Sanctions restrictions mean the use of cryptocurrency in international settlements seems logical, as it allows for cross-border payments outside the traditional financial infrastructure, Sokolnikova said.
“This reduces dependence on traditional intermediaries and can speed up settlements, expanding access to alternative payment channels,” she added.
Cryptocurrency is becoming an alternative channel for foreign trade transactions, especially where traditional banking channels are slow, expensive or intermittent, Pistsov told Vixio.
For payments firms and financial institutions, the shift signals a narrowly defined but potentially material compliance risk.
Exposure to Russian-linked crypto transactions may increase through regulated intermediaries, even as AML, sanctions screening and counterparty due diligence expectations continue to tighten.
“It's not a panacea, but an additional tool – faster and sometimes cheaper, especially for niche markets and complex geographies. However, counterparty risks must be taken into account and subsequent conversion to fiat currency must be made,” he said.
At the same time, the digital ruble could become a competing instrument for settlements with friendly countries. According to Sokolnikova, its development allows for cross-border payments to be structured in national currencies and with a greater level of regulatory oversight.
Regulatory refinement is necessary
According to Finam’s Pistsov, part of the problem is that the cryptocurrency market in Russia lacks sufficient regulation: “Currently, there is a concept and direction, but no finalised laws,” he said. “For the next year, the market will be in a transitional state, with rules already announced but not yet detailed”.
For now, market players are uncertain what the cryptocurrency regulation will look like.
“The existing regulation is rather fragmented,” Pistsov said. “It partially addresses issues related to digital financial assets, partially to cryptocurrencies, but a comprehensive system that would address investment operations, infrastructure and investor protection is still absent”.
In addition, there is no direct ban or licensing regime for cryptocurrency exchanges, and other specialised platforms in Russia, meaning they effectively remain in a grey zone, Sokolnikova noted.
Without additional regulatory refinement, launching a fully operational market within the stated framework is impossible, Pistsov argued.
Ultimately, whether the Bank of Russia’s carefully calibrated approach can deliver both functional cross-border settlements and effective oversight will depend less on the concept itself than on the secondary legislation and supervisory practices that follow.
For payments providers, exchanges and financial institutions, the interim period is likely to be characterised by heightened uncertainty rather than immediate opportunity.
Until licensing regimes, enforcement standards and AML obligations are clearly defined, engagement with Russian-linked crypto flows will carry elevated regulatory and sanctions risk, even where transactions are formally permitted under domestic law.
In practice, the anticipated regulations will determine whether Russia’s crypto shift evolves into a durable, compliant market framework or remains a tightly controlled workaround for sanctions-constrained trade – one that international firms may judge too risky to access without explicit regulatory clarity.
